Three Hot Investment Areas in Medtech for 2013

26 Mar

By Max Klietmann, VP of Marketing, LSN

As we come to the close of Q1 of 2013, LSN has compiled some insight into three of the hottest subsectors being targeted by investors in the medical technology space. New technologies are surfacing that are changing treatment philosophies, and more importantly, medtech is attracting a whole new class of investors such as corporate venture from the consumer electronics, digital media, and telecom space. Here are the three trend areas that are changing the world from the medtech investor perspective:

Personalized medicine

As med tech becomes more complex, it is becoming easier to create patient-customized technologies. This allows treatments to be developed that target specific subgroups of patients within a disease area. The idea is to create better outcomes by tailoring therapy. We’ve spoken about this at length with regard to biopharmaceuticals, but this is taking place in the med tech space as well. It is occurring both in the form of devices that can be customized, as well as in the diagnostic/health IT space. For example, big data and cloud computing are being used in combination with genomics. For under $100, a patient can be screened for over 275 biomarkers, which when run through complex algorithms and predictive models, are helping to create custom treatments. This allows for scalable tailoring of therapy on a patient-by-patient level, resulting in better outcomes with fewer side effects. Investors find this attractive, due to the innate advantages offered, and the scalability of many of these technologies.

Biochips

Biochips are becoming an extremely hot area, especially in the screening space. They are being developed for diagnostic and monitoring purposes, and are being heavily focused on with regard to accurate biomarker measurement. Biomarkers are substances that indicate a particular indication or biological state in a patient, and increased accuracy in their measurement means earlier diagnosis, more targeted therapy, and better outcomes for patients. Again, the ability to significantly improve outcomes in a scalable way has investors excited about this technology.

Mobile-Enabled Active Implantable Devices

Active electronic implants are old news, but what’s new is that these devices are beginning to get smart – the integration of mobile technologies into devices is creating a whole new marketplace within the device space. For example, pacemakers and insulin pumps are already being fitted with mobile technology to allow physicians to monitor patients remotely, compile data on large populations, and diagnose problems / recommend treatment before the patient is even aware. This area is attracting a lot of attention from non-traditional investors, including mobile and telecom corporate venture.

Things are changing fast in medtech and savvy investors are moving fast to dig up the hottest opportunities across the board. Keep your focus on these areas, as they are likely to heat up heavily over the next few quarters.

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